Steady rise in premium Australian wine exports to Canada

Wine Australia’s Export Report shows that Australian wine exports to Canada saw a steady rise in value in the 12 months to the end of March 2016, with exports of wine A$10 per litre and above increasing 6 per cent to C$23.6 million, reflecting growing positive sentiment for Australian fine wine.

From April 2015 to March 2016, the total value of exports to Canada grew by 1 per cent to C$185.3 million, making it Australia’s fourth most valuable export market behind the United States (US), China and the United Kingdom respectively. Volume also grew by 2 per cent to 62 million litres.

In Canada, Australia is the third largest source of imported wine behind the US and Italy and the average value per litre of bottled wine exports has been steadily increasing since hitting a low in 2013, to now sit at C$5.43 per litre, the highest since late 2009.

Wine Australia Head of Market Angela Slade said, ‘Canada is an incredibly important market for Australian wine exports. We’ve seen a steady, sustainable build for our category over the past three years. The key retail trade in Canada continue to support Australia by frequently adjusting their sets and taking chances showing Australia’s diverse wine offering to their customers at multiple price points.

‘Supporting trade education for our premium and fine wines – be that via in-market events or out-bound to Australia – remains the cornerstone of our market investment.’

Wakefield Wines General Manager for Export, Neil Hadley MW, agrees.

‘Perceptions of Australian wine in Canada are changing dramatically. Consumers are discovering there is much more to Australia with our premium quality wines.

‘With the work the industry has done to showcase Australia’s regional diversity, we’re experiencing a renewed enthusiasm for Australian wines.’

Ontario is Australia’s largest market in Canada accounting for 39 per cent of export value. Exports to Ontario grew by 3 per cent to C$72.8 million, while exports to British Columbia increased by 8 per cent to C$45.3 million. Conversely, exports to Quebec declined by 3 per cent to A$36 million. There was also growth to Newfoundland, New Brunswick and Prince Edward Island albeit off much smaller bases.

Global Australian wine exports continue to grow

The total value of Australian wine exports grew by 13 per cent, driven by bottled exports, particularly at higher price points.

Bottled wine exports grew by 16 per cent to C$1.7 billion, the highest value in five years. There was growth in bottled exports at all price points, but growth was strongest at the higher end.

The top five most exported varieties – Shiraz, Cabernet Sauvignon, Chardonnay, Shiraz/Cabernet Sauvignon blend and Merlot – account for 70 per cent of the value of varietal-labelled exports.